We analyze the implications of entrepreneurial spawning for a variety of firm characteristics such as size, focus, profitability, and innovativeness. We examine the dynamics of spawning over time. Our model accounts for much of the empirical evidence relating to the relation between spawning and...

We analyze the implications of the decision to spawn or to retain a new product for the nature and evolution of the firm. In our model, a new product is spawned if the fit between the product and its parent firm organization is not adequate. We focus on the impact of the firm's history of...

Early round venture capitalists can strategically threaten not to participate in a follow-on round of financing: Non-pursued certification by an incumbent venture capitalist known for accurately spotting quality projects, would send a negative signal to alternative financiers. This threat of...

In early round investments by venture capital syndicates, the venture capitalists (VCs) which compose the syndicate often have very different levels of experience. In later round VC syndicates, often no VC from the earlier round syndicate is present. We show that a theory of informational...